Avantor's Path to Outperformance - Leveraging Debt Reduction and Strategic Acquisitions: Analyst
Portfolio Pulse from Vandana Singh
RBC Capital initiates coverage of Avantor Inc (NYSE:AVTR) with an Outperform rating and a $27 price target, citing its favorable position in the Life Science Tools sector and potential for strategic acquisitions. Avantor's leverage ratio has improved from 7x before its 2019 IPO to 3.9x currently, with an estimated decrease to around 1.5x by FY25.
June 21, 2023 | 6:58 pm
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POSITIVE IMPACT
RBC Capital initiates coverage of Avantor with an Outperform rating and a $27 price target, highlighting its favorable position in the Life Science Tools sector and potential for strategic acquisitions.
RBC Capital's Outperform rating and $27 price target for Avantor indicate a positive outlook for the stock. The company's improved financials, including debt reduction and potential for strategic acquisitions, are expected to drive growth and outperformance in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Danaher Corporation (NYSE:DHR) is mentioned as a successful peer of Avantor, which is expected to deliver strong outperformance as it enhances core operating performance and pursues strategic acquisitions.
Danaher Corporation is mentioned as a successful peer of Avantor, but the news does not directly impact Danaher's stock price in the short term. The comparison serves as a reference for Avantor's potential growth and outperformance.
CONFIDENCE 75
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
Thermo Fisher Scientific Inc (NYSE:TMO) is mentioned as a successful peer of Avantor, which is expected to deliver strong outperformance as it enhances core operating performance and pursues strategic acquisitions.
Thermo Fisher Scientific Inc is mentioned as a successful peer of Avantor, but the news does not directly impact Thermo Fisher's stock price in the short term. The comparison serves as a reference for Avantor's potential growth and outperformance.
CONFIDENCE 75
IMPORTANCE 40
RELEVANCE 50